Pre Market Report, Feb 16, 2021 | Stocks and Commodities

 Feb 16, 2021

Time: 8 am

Pre Market Report:

1. Asian markets are higher today also.
2. SGX Nifty is flat.
3. But yesterday's rally was an extra ordinary.
4. Bank Nifty is up 1200 points while Nifty is up by 150 points.
5. Even on Friday, Bank Nifty was very bullish.
6. HDFC Bank, ICICI Bank, Kotak Bank, SBI, Axis Bank all did very well.
7. But it is only Banks and Financials that did well.
8. Even Reliance did not do well yesterday.
9. CPI Inflation that came lower than expected could be a reason for such a bullishness in Banking Stocks.
10. SBI low was around 385 on Friday and Yesterday's high was 410.
11. That is more than 6% move in just one day.
12. There is no doubt that we are in a bull market.
13. In Feb series, first week was a rally, second week was a consolidation, now third week, rally resumed.
14. If the momentum sustains, we can expect other sectors to join the rally.
15. Usually Reliance will do well when Crude prices are higher.
16. But this time, Reliance is struggling.
17. Since US markets closed yesterday, there is no cue from there.
18. So markets may consolidate at higher levels.
19. Minor profit booking in Bank Nifty is not ruled out.
20. Yesterday's rally, particularly 500 points move in last one hour, from 37000 to 37500, seems to be due to short covering.
21. DIIs sold less than what FIIs bought, so markets rallied non stop.
22. India VIX is down by 10% in last 3 trading sessions.
23. That is a good sign, downside may be limited.
24. Usually markets make a big move when Nifty future trades without any premium to spot price.
25. That has happened yesterday.
26. Now Nifty Future trading at premium to spot price.
27. Bank Nifty future trading at a significant premium.
28. Bnk Nifty may continue to be in focus today.
29. Auto sector is struggling due to higher Crude prices and Semi Conductor shortage.
30. Nifty future may trade between 15180 and 15380.